Even though the consumer’s demand is sluggish, the federal government still pours stimulus dollars into the economy to a tune of ove$500 billion annually. While most of the government contracts go to some of the big corporations, about 23 % of the spending is set aside for small businesses. As a small business, winning this contract can be painstaking, overwhelming and most of all competitive. Despite it all, the payoff is significant. That’s why you might need to consider the following to win the contracts:
Government agencies use the past performance as an indicator of possible success. If you need to make your way up, you need to bid on projects that are worth as low as $2000. You can start by subcontracting where you look for prime contractors and offer to provide services to them. This is one of the strategies that most of the businesses who have succeeded in winning government contracts used. One of the main mistakes small business do is to think that the government won’t buy what they are offering. The truth is, the government buys almost everything and when you do your research right– which you can get free access to government bids online – you are going to be in a better position to bid the contracts.
As part of your research, you need to create your profile on the central contractor registration where the government procurement officers can easily find you and what you are offering. After that, you can get to the preapproved bidder list schedule, where you can check out at what your competitors are providing. With this, you can know your target and be in a better position to winning the contracts. On average, you can take up to two years to win your first government contract. You must be ready to invest both money and time in the bidding process- in the process you will find contractors spending over $100, 000 in cash and resources depending on the contract. You also might not get a big contract at a go, but when you are persistent enough, you will grow your portfolio and be on top of the list to go for more significant deals. As much as it takes, you can be assured that the effort will pay off when you land on the contract.
Government is not a cold entity where you just put together bid proposals. You need to build a good relationship with the procurement officers and build a partnership with other small contractors to bid contracts as part of a team. On this, you can find agencies having liaisons with the Office of Small and Disadvantaged Business Utilization to lobby on their behalf. You might also want to take the mentor route, which can help you get access to contracts and get good relationships with other contractors. In the U.S. you will find two mentor programs that work closely with the government. They include the GSA mentor-Protégé Program and the SBA Mentor- protégé program. Ther programs offer significant benefits to both experienced and starters on matters concerning government contracts.